Turnover up 2.1% for the first nine months
Activity in the 3rd quarter of 2016
HERIGE Group posted turnover of €123.9 million in the third quarter of 2016, down 3.7% on the same period in 2015. All Group activities suffered from a negative calendar effect, with 2 working days less in the third quarter triggering a drop-in business volumes.
Turnover for the Materials trading business fell 2.5% to €82.9 million. Impacted by the termination of the Slabs and Cladding activities on 31 July 2016, Concrete industry turnover also fell 5.6% and continues to be hampered by a fiercely competitive market. Turnover for Industrial joinery dropped back 4.0% over the period, notably for PVC joinery.
At the end of the first nine months of 2016, Group turnover amounted to €414.7 million, up 2.1% at constant scope which reflects a gradual rebound in activity.
Outlook and developments
Stronger sales remain the priority for HERIGE Group in order to fully capitalize on the first positive signs from the construction sector. As the end of the year approaches, the Group is enjoying an improvement in its order book for Joinery which benefits from the momentum behind its AM-X product and a sustained level of activity for Materials trading linked to the success of its "Batidays" operation.
Another Group priority is to take the necessary action to restore the profitability needed to finance its future development.
Change in Governance
HERIGE's Management Board has appointed Philippe Queneau as Chief Executive Officer for the Concrete industry division with an effective date of January 1, 2017 to replace Daniel Robin who will head up the Group's External Relations Department. This new function will enable the Group to forge privileged ties with professional and institutional bodies, intervene upstream of transactions and future projects, and promote HERIGE's expert knowledge of all of its businesses.
NEXT PRESS RELEASE: 2016 turnover on 7 February 2017 (after the stock exchange closes)
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